Torn b/w 2nd house hack or begin BRRRRing

26 Replies

Originally posted by @Tyler Mutch :

@Jimmy Lieu Correct. The big guys won't do it because they have to sell the notes and notes on properties that need work. Yes! I got 5% down on a portfolio loan, they are more difficult to get because you have to get the bank to take more of a risk, and their capital has to sit for longer in this kind of deal. Mine was higher yes. I got 5.5% portfolio and it has a balloon period of 5 years, and its an ARM. So it's definitely a riskier loan, but it got me started and I understood what would happen if it went up to the max amount. This is how I did my only house hack, I bought a SFR prior to house hacking.

This is so valuable. Thank you Tyler.

One last question about this. When would you say a HML loan would be a better option than versus a portfolio loan? I know HML loans use much higher interest rates but they seem to be much more flexible and you're able to get your money in and out fast.

I am only a bit confused on which option is better and what case to use a portfolio loan or HML?


Jimmy, it's pretty much about the numbers. If you need the money longer, want the lower interest rates and have the ability to qualify, then use the portfolio loan. If you don't have much of a track record/can't qualify/your only option is to pay the higher interest, points, etc., then go with the HML. Just know that it's imperative you get in and out quickly. Read the fine print about what happens if you need an extension, or can't pay the loan back in the short time frame that is customarily a key deal point in HMLs. Happy to discuss with you in greater detail if you need it. Just IM me.

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